How to Measure Social Media Marketing ROI?
It has become a norm for everyone in the digital age to adopt the use of social media for the purpose of networking.
Little wonder why social media audience is very large and keeps growing every minute.
Social media is an effective marketing tool used to create awareness as well as increase sales.
It is not exclusive to particular businesses as any business type can make use of social media to promote their products or services
How Social Media Came into Being
The in-depth history of social media is inexhaustible.
However, in May 1997, SixDegrees was introduced and considered widely to be the very first social networking site.
It was known as a social networking site because it contained a profile and a friend list option.
Other social media networking sites have originated after that, with each solving a problem which they felt the others have failed to address.
How Does a Social Medium Work?
Social media unlike traditional media is much more complex.
It is a computer-based technology that uses virtual networks to make communication and sharing ideas possible.
It is made possible through the help of the internet and it gives users the opportunity to network and communicating electronically.
Put simply, social media is a communication tool that contributes to making the world a global village.
Categories of Social Media
Social Media platforms can be divided into various categories, depending on their features or characteristics.
1. Instant Messaging Network
This category refers to the social media platforms that are designed majorly for instant messaging and chatting.
They can be seen as the quick response network that aids the fast exchange of information between persons.
For example; WhatsApp, We chat Slack, and so on.
This network can be used to reach your customers faster and makes the marketing process easier.
2. Media Sharing Networks
These platforms are designed majorly for sharing files, images, and other forms of documents to a person or a large community.
For example; Instagram, YouTube, Snapchat.
The advantage of the media sharing network to your business is that it helps you to share images and videos of your products to get the attention of your audience.
3. Social Networks
The main focus of social networks is to connect with people from all works of life.
You can find different categories of individuals here.
This means more audience for marketing purposes.
Examples of social networks are Twitter, Facebook, and LinkedIn.
4. Publishing Networks
It allows you to share valuable content to a large audience.
These contents can help you get the attention of your prospective audience.
An example of a publishing network is Medium.
5. Information/ Discussion Forums
These social media platforms help you share meaningful information and ideas with an audience who has an interest in a particular niche.
This is a very good way to let people know that you are a professional in that field.
Hence, it becomes easy to gain their trust.
Examples of platforms under this category are Reddit and Quora.
These platforms serve as an easy referral link to improving website traffic.
You can share pictures and content with them and enjoy the benefits attached to it.
A good example is Pinterest.
Top 14 Popular Social Media Platform
There are various types of social media platforms and more are springing up each day.
Each type of social media has its own unique feature, making it almost impossible to utilize just one of them.
Most people combine various types of social media platforms to complement their needs.
Some of the popular social media platforms are;
Facebook is one of the earliest social media platforms that were introduced.
It is owned by Mark Zuckerberg and can be used to meet numerous needs.
Facebook is a very strong marketing tool as it supports the running of advertisements, live video, status updates with more than a billion users available on the space.
Instagram is a popular social media app primarily used for sharing photos and videos.
It also has a live video feature that enables you to share live content.
Instagram is a very useful marketing tool not just because of its features but because of the millions of audiences it avails you.
It is important that every business has an Instagram profile to showcase their brand and also reach a wide range of customers.
In the past, Linkedin was seen as a job search site where jobs are advertised but in recent times, Linkedin has become more than that.
It is a medium for professionals from various industries to meet, network, scout for talents, and even advertise their brands.
Like most other social media apps, LinkedIn provides you with a wide range of individuals from various parts of the world.
Although, it is important to note that due to the nature of people on LinkedIn, the tone of contents or ads should be a bit formal.
Youtube is a video sharing medium.
It’s an app where people share different kinds of content through videos.
The content available on YouTube ranges from tutorials, reviews, dance videos, tips on different things, past experiences and so many others.
With YouTube, you can advertise your product or service by showcasing your creativity, creating great ad contents, or simply recording reviews from customers.
Twitter is a widely used and popular means of communicating real-time news events.
This is what makes Twitter stand out from a lot of social media platforms.
Every trending story can be found on Twitter.
It also has a location advantage.
Depending on where you live, you can set up your account to see what is trending around you and contribute to the topic or retweet comments from other people (when you retweet comments, it reflects in your timeline).
Slack is the perfect workplace communication tool that is used for sharing ideas, files, calls, and videos.
It is mobile supportive giving you the chance to communicate on the go.
For marketing, slack is perfect for launching new products.
WeChat is an instant messaging app like WhatsApp.
It is used to simplify online payments and serves as a good business link between buyer and seller.
8. Tik Tok
It is an extremely popular video Creation app that allows you to keep up with trends.
Tik Tom should be every entrepreneur’s favorite platform in 2020.
With this platform, you have the opportunity to make your products or services go viral to over 800 million users.
Snapchat is a video and picture sharing platforms that allow friends to take and share real-time videos and pictures with numbers filters to pick from.
The presence of Snapchat stories makes it a good platform to market your products and get them seen by people.
Most marketers, however, prefer to use other social media platforms to market their products rather than use Snapchat.
Just like other instant messaging apps, Telegram is very popular, especially because of its high-security feature.
Telegram is can accommodate thousands of people in a chatbot or single group and most of these groups are used for marketing purposes.
Similarly, it has a broadcast feature that can also be used for marketing.
This is an instant messaging platform that encourages instant feedback.
It is currently used in over 180 countries in the world.
With the introduction of WhatsApp stories, it has risen as one of the utilized social media platforms by small businesses, especially freelancers.
The group chat feature also makes it stand out from the other platforms in the aspect of marketing.
Pinterest is a place to discover new things, especially contents and pictures.
Engagement is not the major focus of this platform as it helps to inspire the audience.
This is a perfect website for your business as it helps to keep your business in the minds of your audience, helping to shape their buying decisions.
Tumblr is a microblogging and social networking site for sharing text, photos, links, videos, audios, and more.
It is a great awareness-building platform as a result of the media sharing features.
Medium is an online publishing platform with a social network element.
The unique aspect of this platform is that it gives users the chance to publish and read articles for free.
Business owners have the chance to create new contents to reach the audience or publish content on their blog to increase the reach as well as the direct impressed audiences to their website or blog.
There are several other social media types that are also very popular and can be used for marketing purposes.
What is social Media Marketing?
Social media marketing as the name implies is the promotion of goods, services, or ideas using social media platforms.
It falls under digital marketing because it involves marketing through digital means.
It is the perfect way for any company or business to reach multiple audiences, increase awareness, drive sales conversion, and website traffic.
Social media marketing is not limited to running adverts alone.
The unique aspect of it is getting to build a community that would like and trust your business and grows into loyal customers in the long run.
Benefits of Social Media Marketing
Marketing on social media is the new normal and can be seen as the new school marketing method.
As a result of its large user rate, marketing through social media is a good idea.
- It has a wide reach which helps brands and businesses increase awareness.
- Leads to increase in sales conversions.
- Increases brand loyalty after building a community for your business.
- It is extremely affordable
- If used properly, it can drive traffic to your website.
Why Spend Money On Social Media Marketing?
Every day millions of people are absorbed in their smartphones or computers and a large percentage of those people are making use of a platform known as social media for one reason or another.
Social media and the internet aren’t exactly a new thing as it has existed for quite a while.
However, due to its ever-increasing indulgence by individuals, it is the perfect place for marketing.
Instead of waiting for customers, you can reach a wide number and variety of interested people without both physically and online, enabling real-time business transactions.
Using social media is very affordable.
If closely calculated, you might be spending less to nothing and getting huge marketing results.
Social Targeting for Maximum Return on Investment (ROI)
In using social media for marketing, there are some things to take into consideration.
Social media is a place filled with different people, and the fact is that not everyone will need your product.
Nevertheless, there are ways to target your audience on social media;
1. Know Your Audience Likes and Interests
The best way to make sure that you’re reaching people interested in your product is to know what your potential audience would like.
You can’t advertise gadget on a book review page and expect to capture a large number of people, the audience has to be interested in your product.
2. Know Your Target Age Grade
In marketing, your products are either inclined to adults, youths, or minors.
If you sell baby things, your target audience should be adults because they are the ones that buy for their kids.
It’s always important to keep the target audience’s age grade in the picture.
3. Cooperate With Similar Businesses
As a brand utilizing social media, you might come across a business that compliments yours.
Having a partnership with other brands can make their customers your costumers too.
Properties of a good real estate marketing plan
The Actual Key performance indicators (KOI’s) That You Can Measure Will Vary by Social Media Platform, But Typically Include the Following:
1. Website Clicks
Clicks on your links are determined by the quality of your post.
Of course, your costumers will click on almost everything you share, but the majority are only going to click on posts that interest them.
A large number of clicks with little likes might communicate that the content isn’t impactful.
On the other hand, a little number of clicks with a large engagement ratio proves that the content is good but the reach is poor.
2. Profile Visits
The number of profile visits is a very essential KPI because the more profile visits you get the more the awareness of your page grows and the engagement on the page skyrockets.
A very high profile visit means more people are coming in daily to engage on your page.
A low profile visit count means a decline in publicity and or a drop in quality of your page.
Likes may be one of the most important KPI because it directly affects if the audience you get is moved by your marketing.
A lot of likes mean a lot of costumers, low likes mean low interests regardless of good publicity.
In most social media platforms, using Instagram as a case study, the number of likes is a factor of whether your post would get to the explore page or not.
Comments are the best ways to hear your audiences ‘voice’ on your content and they can comment on anything, from opinion to improvement tips.
These are very helpful for growth as comments have a way of inviting even more comments.
5. Active Followers
This is exactly how it sounds, your followers aren’t all going to be active (take actions on the page such as likes, comments, and bookmark) active followers are the building blocks of a strong outreach.
How to Measure Social Media Marketing ROI
Measuring returns on investment is vital in social media marketing, and many social media marketers fail to measure it.
ROI is simply checking to see how efforts on marketing are affecting the business, when we delve into social media ROI check, there are ways to do it on most platforms;
1. Social Media Insights
Most social media applications such as Facebook, Twitter, Instagram, and LinkedIn amongst others already have the built in ability to record and display the insights of a page.
Data such as profile visits, average likes, reach, comments, average new followers, and so on are available on them making Return of investment measurement easy.
2. Google Analytics
Google Analytics is the most powerful tool for measuring the Return of Investment of social media.
Google Analytics’ social reports show marketers the impact of nearly all social actions, in which social networks are yielding the best results, which content is the most popular, and many more which makes determining the return of investment a breeze.
Google Analytics gets a fairly regular stream of facelifts, tinkering with where certain reports are nested.
3. Study your Competitors
Whilst this may not give you a direct measurement, it helps to see what method works for your competitors and how it works.
While the social media marketing ROI can be measured in a lot of ways it’s not completely accurate as some factors cannot be measured.
If a person sees your post and gets to know your brand through it, the same person can get accustomed to your service without being active on the page.
If that same person advertises it to another person without the latter seeing your page, it can still be traced down to social marketing but without a measurement means.
Why Measure Social Media Marketing ROI?
The social media market is highly competitive for almost all business as it is widely utilized these days.
Once you develop a strategy and send out your campaign, it would be illogical for you not to measure the impact.
Measuring return on investment is very necessary for;
- Revealing marketing performance
- Pointing out areas that need re-strategizing
- A better understanding of your audience
- Lets you know the impact of your marketing campaign
- Helps you in determining how much value you have been able to give to your audience.
How to use Social Data to Boost Sales?
Social data is a collection of certain public information mostly about your audience and their activities.
Your social data doesn’t just help you get reviews or feedback about your brand’s performance, it helps you react by taking the right steps to improve social media marketing.
This can be done by;
1. Monitor your Social Media Listening
Social listening data helps you to analyze the trends happening in your niche or focus area.
It also helps you gather sufficient data concerning how much reactions your campaigns get in the different social media platforms; including the comments on your page, likes, and views.
Once you are aware of how many people are paying attention to your brand and all the messages/ campaigns, it enables you to re-enforce and come back with stronger marketing systems.
2. Monitor your Audience and Reach
Social media data gives you access to see how many people are actively interested in your brand.
Your follow count falls under this category, including the social media analytics which is mostly available for business pages.
It helps you know and understand who your audience is and the best way to send out your campaigns.
Most social media analytical data includes how many people got to see what you posted, their location, and even their gender.
All this information is extremely vital for marketing purposes.
3. Monitor your Competitors
Your competitors are those who are in the same line of business as you are.
They could be people who sell similar products or render similar services.
Social data helps you monitor their level of engagement with their audience and how fast they are excelling compared to you.
This gives you an avenue to learn from your mistakes to try other effective marketing strategies.
Finally, Social Media is a marketing tool for now and the future.
The most outstanding benefits are how easy it is to measure ROI when compared to other marketing forms.
If you are marketing on social media platforms without utilizing this benefit, it is important you start taking advantage of it.